Summary
As the margin on wholesale decreases, the long distance companies are increasing focusing on the enterprise play for better margins. Inorganic way is the faster route. Similarly, the enterprise player can make multi state play if it has better control of its network and bandwidth. So at the logic level, it is a good move but numbers need to be reconciled as well (note: I have not analysed them).
Analysis
Pluses: huge bandwidth, end to end next generation network, multi service / telco application platform, unified account management. end to end SLA and QoS control to act as competitive advantage, better grip on pricing, better bargains in equipment puchase
Minus: complication in backend process alignment and billing reconcilation, cost of aligning/merging companies, Culture confrontation/confusion and HR churn (good but many good managers may leave also), transfer pricing is not always the best option vis a vis open market evaluation
Not analysed: Financials
